Long-Term Assignments
A long-term assignment is a longer stay by an employee (“the assignee”) at the assignment location; generally for the duration of 1 to 5 years. Generally, his/her spouse and family are allowed to accompany the assignee. For duration beyond 5 years, present-day employers generally convert the long-term assignment into a permanent relocation or localisation. Under a permanent relocation arrangement, the expatriate employee receives compensation and benefits similar to those received by local employees plus some “extras”, e.g. a reduced level of cost of living allowance. Under localisation, the expatriate employee’s compensation and benefits will be adjusted to the level enjoyed by local employees.
The assignee needs:
- accommodation and security at assignment location,
- cost of living expenses,
- arrangements and efforts for bringing over the family (e.g. sourcing for appropriate schooling, spouse support, shipment of household and personal effects, etc.),
- availability of living amenities such as medical and entertainment services,
- frequency of home trips, etc..
The employer concerns:
- how to compensate the assignee,
- how long and how often to pay/provide different types of benefits,
- how to structure the payment of different allowances, and
- whether to continue paying/provide home country benefit